Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Gold Discounts are Historically High

by September 21, 2022
September 21, 2022
Gold Discounts are Historically High

As we looked at yesterday’s Discount for the Sprott Physical Gold Trust (PHYS) we realized it was one of the lowest readings on record since data started being collected in 2010.

Closed-end funds like PHYS can sell at a premium or discount to their net asset value (NAV) which is based on the price of physical Gold in the trust. We have about twelve years of premium/discount data on the closed-end fund Sprott Physical Gold Trust (PHYS). We use that data to gauge gold sentiment — premium readings show bullish sentiment, and discount readings show bearish sentiment.

We are taught to think of sentiment as being a contrary indicator, but that is not always the case. It is only contrary within a certain context. For example, if gold is trending up, we should expect sentiment to be positive, and vice versa. It is when it becomes ‘excessively’ positive (or negative) that it becomes contrarian. Current conditions provide us with a good example.

This is a monthly chart going back to 2010 when we started tracking discounts and premiums on PHYS. Readings are incredibly negative. We put the readings on a spreadsheet and yesterday’s reading -2.27 was #24 on the list. Today’s reading was -2.24 (number #29 on the list). The highest discount on record is -3.58.

Conclusion: What does this all mean? Looking at the chart, it could mean an upside reversal is coming based strictly on sentiment. The double-top on the monthly chart isn’t encouraging, but price lows do seem to follow higher discounts over time.

Join Erin at ChartCon 2022! It’s going to be an entertaining and high learning environment for investors! Erin will be debating her friend, Tom Bowley on where the SPX will go. It’s no secret that Tom is a bull and Erin is a bear. Come see their take on where the market is likely headed into the end of 2022. Click HERE to learn more! Recordings will be available for all attendees.

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2022 DecisionPoint.com

Helpful DecisionPoint Links:

DecisionPoint Alert Chart List

DecisionPoint Golden Cross/Silver Cross Index Chart List

DecisionPoint Sector Chart List

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

0
FacebookTwitterGoogle +Pinterest
previous post
Mish’s Daily: Is Silver About to Outshine Gold?
next post
Comedian Tim Allen Cracks Very Funny Joke About Joe Biden and Leftists Go Crazy

You may also like

Late-Hour Selloff Confirms Downtrend Phase!

October 26, 2023

Recap and Action Plan: Small Caps, Beans, Oil

November 18, 2023

Three Thoughts on Risk Management for October 2024

October 9, 2024

This Industry Group LOVES The Next 3 Months

February 20, 2023

Post Tech Earnings & FOMC — Give Retail...

February 1, 2024

Striking While The Iron Is HOT!

October 15, 2023

The Halftime Show: Under the Hood — Short...

April 24, 2023

Navigating the Indecisive SPY: What Investors Should Know

December 19, 2024

The SPY Knocks on the Door of Resistance

January 29, 2023

Three Technology Stocks in Make or Break Scenarios

August 27, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rescissions: A Small but Welcome Step Toward Spending Discipline

      June 5, 2025
    • DAVID MARCUS: Why Navy ships should not be named for gay rights icons

      June 5, 2025
    • GREGG JARRETT: Biden, the ‘marionette president; and the case of the runaway autopen

      June 5, 2025
    • Trump Practically Bans Travel and Immigration from 12 Countries with Flimsy Security Justifications

      June 5, 2025
    • ‘He’s not a big factor’: Trump’s Senate allies dismiss Elon Musk’s calls to ‘kill the bill’

      June 5, 2025
    • Fears grow that Tata Steel could be excluded from Starmer-Trump trade deal

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,523)
    • Stocks (3,127)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved